Why Coinbase Should Keep An Eye On This SEC Lawsuit?

How This SEC Lawsuit May Influence Coinbase's Future

US Securities and Exchange Commission (SEC) recently sued a crypto platform, Beaxy.com, for operating an unregistered exchange, brokerage and clearing business.

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This move is believed to be SEC's precedent for taking down a much bigger fish, Coingape Global Inc. in the future on similar grounds.

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The firm has recently received a notice from the SEC, formally declaring their plans to take legal action against the exchange.

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SEC chair Gary Gensler has repeatedly said that the tokens and products offered by crypto companies are to be registered with the agency, which Coinbase has failed to do.

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On the other hand, Coinbase CEO Brian Armstrong and Chief Legal Officer Paul Grewal stated that they are willing to fight in court with SEC as they are confident about the legality of their services.

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SEC has also taken action against platforms like Poloniex LLC and Kraken for allowing customers to buy and sell digital asset securities without properly registering, staking-as-a-service, and more.

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Coinbase shareholders and investors are advised to keep an eye on the updates of this case as it might affect the stock price drastically.

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